Banks cut lending rates as funding pressures rise to support economic growth

Banks are continuing to lower lending rates and maintain credit growth despite higher funding pressures, with leaders saying credit programs are being implemented in a coordinated manner and aligned with policy priorities. They also said liquidity management and funding restructuring are underway to support deposit and lending rate stability.

Agribank: funding mobilization challenges, loans grow in line with priorities

Speaking to the press, Mrs. Phung Thi Binh, Deputy General Director of Agribank, said the bank remains committed to stabilizing deposit and lending rates to support economic growth. In Q1 2026, funding mobilization faced difficulties as some banks raised rates. As a result, Agribank’s funding increased by only 0.3%, while deposits from households rose by nearly 1.5% and deposits from institutions fell by 1.2%.

Agribank said it is keeping lending rates at a low level in the market and rolling out preferential credit programs in line with government direction. By March 31, 2026, total outstanding loans were about 2,000 trillion dong, with 64% in agriculture and rural areas. In Q1, credit grew by 1.8%. The bank also said it is tightening risk control and intensifying support for customers.

BIDV: rate reductions and credit packages for priority sectors

Mr. Lai Tien Quan, Deputy General Director of BIDV, said the bank is following government and State Bank directions. BIDV reduced lending rates by 0.5% per year on deposits with 24 months or more maturity, effective from April 13, 2026, and also reduced corresponding lending rates. BIDV said it is considering further deposit rate reductions to lower funding costs, enabling lower lending rates, particularly for processing and production of food and rice.

In Q1 2026, BIDV implemented credit packages totaling over 700,000 billion dong, with lending rates lower by 0.5–1.5 percentage points per year compared with usual levels. The bank focused credit on prioritized sectors including processing industries, exports, high-tech agriculture, industrial zones, energy, infrastructure and logistics.

BIDV also reported procedural reforms, reducing about 45% of steps and 54% of processing time in 2025, with improvements expected in 2026. It said more than 73% of products and services are fully digitized.

State Bank briefing: government-guided credit programs and disbursement progress

Credit orientation toward priority sectors follows Government directives. At a press briefing on Q1 2026 banking activity results organized by the State Bank on the afternoon of April 14, Ms. Ha Thi Thu Giang, Director of the Credit for Economic Sectors Department (NHNN), shared information on government-guided credit programs implemented by credit institutions.

Agriculture, forestry and fisheries program expanded

The credit program for agriculture, forestry and fisheries was expanded from 15 trillion dong to 185 trillion dong. Cumulative disbursement has reached over 185 trillion dong, meeting the target.

Resolution 33/NQ-CP: social housing loans for people under 35

The loan program under Resolution 33/NQ-CP, including loans to people under 35 to buy social housing, was identified as a key program. The State Bank said it coordinated with ministries, sectors and localities and directed commercial banks to implement solutions.

By the end of February 2026, banks had committed to lending nearly 22,000 billion dong. Disbursement was around 9,600 billion dong, up about 2,000 billion dong from end-2025. Of the disbursed amount, 8,100 billion dong went to developers at 53 projects, and about 1,500 billion dong went to buyers at 36 projects. Lending to people under 35 reached about 259 billion dong.

Ms. Giang said the initial phase faced difficulties, with disbursement not high. She noted that disbursement improved over time, with month-after-month gains as social housing supply increased.

Infrastructure and strategic technology credit: initial results

The investment infrastructure and transportation and strategic technology credit program, after more than two months of implementation, produced initial results. By February 28, 2026, banks signed loan agreements for eight projects totaling about 71 trillion dong, with more than 7 trillion dong disbursed. Twenty-three other projects were reported as under assessment.

High-quality, low-emission rice in the Mekong Delta

The linked production, processing and sale of high-quality, low-emission rice in the Mekong Delta has been launched. After nine months, by the end of February 2026, disbursement stood at about 3,600 billion dong, with about 57% belonging to Agribank.

System-wide figures and outlook

By the end of Q1 2026, credit growth across the system reached 3.18%, while deposits rose 0.55%. Banks said they will continue to steer credit in line with NHNN directions, focusing on manufacturing and business sectors. They also said they will continue to implement preferential credit programs, including for agriculture, social housing, infrastructure and SMEs, while restructuring funding, controlling costs and adjusting interest rates to support businesses and people.